Prior to taking legally binding action on a shared appreciation agreement, borrower/ borrowers must take specified counseling regardless of location of the property.
Allowed ILL FPR to adopt regulations regarding shared appreciation agreements.
Defined shared appreciation agreement, including the term within the definitions of mortgage loan, residential mortgage loan, as well as home mortgage loan.
For each loan for which application is taken, broker or originator must check predatory lending database whether borrower has entered into shared appreciation agreement.
For first time buyers or those who are refinancing a primary residence with loan including shared appreciation agreement, must recommend borrower for counseling.
Legislative History
On Feb. 9, 2024, bill introduced in Senate; on Apr. 12, 2024, bill passed Senate.
On Apr. 12, 2024, bill introduced in House; on May 23, 2024, bill passed House.
Effectiveness
Illinois bills passed before Jun. 1 take effect Jan. 1 of the next year, on Jan. 1, 2025.
Aug. 2024 ILL LEG Governor Approval
On Aug. 9, 2024, ILL LEG reported governor approval; assigned Public Act 103-1015.
Regulators
ILL LEG
Entity Types
Bank; CU; MG Orig; Servicer; Thrift
Reference
Public Act 103-1015, 8/9/2024; Bill SB3551, 5/23/2024; Citation: *ILL LEG* 205-635/1-4, 765-77/72, 765-77/73;
